Core Viewpoint - iQIYI, Inc. reported mixed Q3 results, prompting a detailed analysis of the numbers and future outlook for the company [1]. Financial Performance - The Q3 results were characterized by a combination of positive and negative indicators, suggesting a complex financial landscape for iQIYI [1]. Investment Perspective - The analysis indicates a long-term investment horizon of 5-10 years, emphasizing a portfolio strategy that includes a mix of growth, value, and dividend-paying stocks, with a particular focus on value [1].

Investment Rating - The investment rating for iQIYI (IQ.O) is currently "Neutral" with a target price based on expected performance relative to benchmark indices [1]. Core Views - iQIYI's Q3 2024 performance showed a revenue decline of 10% year-over-year, totaling 7.25 billion yuan, with membership services and advertising revenue under pressure due to content performance [1]. - The company is focusing on micro-dramas as a new content supply to enhance user engagement and monetization opportunities [1]. - iQIYI has introduced a family membership package to optimize its membership service system, aiming to attract more users [1]. Summary by Sections Financial Performance - Q3 2024 revenue was 7.25 billion yuan, down 10% year-over-year; operating profit was 240 million yuan, with a Non-GAAP operating profit of 370 million yuan; net profit attributable to shareholders was 230 million yuan, with a Non-GAAP net profit of 480 million yuan [1]. - Membership service revenue was 4.4 billion yuan, down 13% year-over-year, primarily affected by content performance [1]. - Online advertising revenue was 1.3 billion yuan, down 20% year-over-year, mainly due to a decline in brand advertising [1]. - Content distribution revenue increased by 52% year-over-year to 810 million yuan [1]. - Operating costs were 5.6 billion yuan, down 3% year-over-year, with content costs at 4 billion yuan, down 5% year-over-year [1]. - The company achieved a gross margin of 22%, down 5.1 percentage points year-over-year [1]. Strategic Initiatives - iQIYI is increasing its investment in micro-dramas, which are seen as a valuable supplement to long-form video content, with plans to offer all micro-dramas for free to members [1]. - The introduction of the "Golden VIP Family Card" package aims to enhance user experience and attract more subscribers [1]. Future Outlook - The company is expected to face short-term challenges in its membership business, but there are upcoming series such as "Winter Solstice" and "I'm a Criminal Police Officer" that may improve performance [1].

Investment Rating - The report assigns a "Buy" rating to iQIYI (IQ) with a target price of $3.30 per ADS, compared to the current price of $2.02 [5] Core Views - iQIYI reported 24Q3 revenue of RMB 7.246 billion, down 10% YoY and 3% QoQ, slightly above Bloomberg consensus of RMB 7.242 billion [4] - Non-GAAP net profit was RMB 480 million, down 23% YoY but up 94% QoQ, significantly exceeding Bloomberg consensus of RMB 266 million [4] - GAAP net profit attributable to shareholders was RMB 230 million, down 52% YoY but up 235% QoQ, beating consensus of RMB 202 million [4] - Gross profit declined 27% YoY to RMB 1.596 billion, with gross margin at 22%, down 5 percentage points YoY [4] - Content costs were RMB 4 billion, accounting for 50% of revenue, down 5% YoY and 2% QoQ [4] Business Segment Performance - Membership revenue was RMB 4.366 billion, down 13% YoY and 3% QoQ, slightly above consensus of RMB 4.335 billion [4] - Advertising revenue was RMB 1.337 billion, down 20% YoY and 9% QoQ, slightly below consensus of RMB 1.344 billion [4] - Content distribution revenue grew 55% YoY to RMB 814 million [4] - Other revenue was RMB 729 million, down 9% YoY and 7% QoQ [4] Strategic Upgrades - Optimizing long-form drama production mechanisms to improve flexibility and ROI [4] - Expanding short-form drama offerings, with a focus on the iQIYI Lite app [4] - Launching family sharing accounts to enhance membership services [4] Financial Projections - 2024 revenue forecast adjusted to RMB 29.2 billion, down 8% YoY [8] - 2025 revenue expected to grow 5% YoY to RMB 30.6 billion [8] - 2024 Non-GAAP net profit projected at RMB 1.765 billion [8] - 2025 Non-GAAP net profit expected to reach RMB 2.901 billion [8] Valuation - Based on 13x PE multiple on 2024 adjusted net profit, target price set at $3.30 per ADS [8]

Investment Rating - The report maintains a "Buy" rating for iQIYI (IQ US) with a target price adjusted to $2.90, reflecting a potential upside of 43.6% from the current price of $2.02 [1][3][22]. Core Insights - iQIYI's membership revenue is expected to remain under pressure, with a projected decline of 13% year-on-year and 5% quarter-on-quarter in Q4 [1]. - Advertising revenue may see slight growth due to seasonal factors, while content distribution revenue is anticipated to drop by 20% year-on-year [1]. - The report emphasizes the importance of micro-short dramas in enhancing user engagement and retention, despite the competitive landscape and content homogeneity [1]. - The strategic focus includes optimizing content production and operations, with a shift towards high ROI content and increased investment in micro-short dramas [2]. Financial Forecast Adjustments - Revenue and profit forecasts for 2024 and 2025 have been revised downwards due to ongoing uncertainties in content performance and membership pressures [1]. - The new revenue forecast for 2024 is set at RMB 29,244 million, a decrease of 3% from previous estimates [4]. - The adjusted operating profit for 2024 is projected at RMB 2,307 million, reflecting a 7% reduction from earlier predictions [4]. Quarterly Performance Overview - For Q3 2024, total revenue is reported at RMB 7,246 million, continuing a downward trend with a 10% year-on-year decline [15]. - Paid membership numbers decreased to 4,366 million, down 13% year-on-year, while online advertising revenue fell by 20% to RMB 1,337 million [15]. - The operating profit margin for Q3 2024 is noted at 3%, significantly lower than previous periods, indicating challenges in maintaining profitability [15]. Market Position and Trends - iQIYI's market capitalization stands at approximately $1.06 billion, with a significant decline of 58.61% year-to-date [1]. - The report highlights the competitive nature of the industry, stressing that long-term success will depend on content quality and innovation [1][2].

iQIYI, Inc. (NASDAQ:IQ) Q3 2024 Earnings Conference Call November 21, 2024 6:30 AM ET Company Participants Chang You - Investor Relations Director Yu Gong - Founder, Chief Executive Officer and Director Jun Wang - Chief Financial Officer Youqiao Duan - Senior Vice President, Membership Business Xiaohui Wang - Chief Content Officer Conference Call Participants Xueqing Zhang - CICC Lei Zhang - Bank of America Maggie Ye - CLSA Operator Thank you for standing by and welcome to the iQIYI Third Quarter 2024 Earni ...

22 Nov 2024 CMB International Global Markets | Equity Research | Company Update iQIYI (IQ US) Short-term headwind continues; strategic upgrades to drive long-term growth iQiyi reported 3Q24 financial results: total revenue declined by 10% YoY to RMB7.2bn, in line with Bloomberg consensus and our estimate; non-GAAP net income was down by 23% YoY to RMB480mn, ahead of consensus/our estimate of RMB266/426mn primarily due to better-than-expected opex control and foreign exchange gains. Looking ahead in 4Q24E, w ...

22 Nov 2024 CMB 国际全球市场 | 股票研究 | 公司更新 爱奇艺 (IQ US) 短期逆风持续 ； 战略升级推动长期增长 爱奇艺报告了2024年第三季度财务结果：总收入同比下降10%，达到人民币72亿 元，符合彭博一致预期和我们的估计；非GAAP净收入下降23%，至人民币4.8亿 元，超出彭博一致预期和我们的估计（人民币2.66亿/4.26亿），主要得益于更好 的运营费用控制和外汇收益。展望2024年第四季度，我们预计总收入将同比下降 14%，环比下降8%，主要由于内容供应减少和消费情绪疲软。不过，我们预计2 024年第四季度非GAAP营业利润环比大致持平，为人民币3.68亿元，得益于爱奇 艺谨慎的成本和运营费用控制。该公司将增加迷你剧的投资，同时削减低回报率 内容的投资，我们预计这将帮助爱奇艺抓住新的增长机会并长期提高利润率。我 们将2024年至2026年的总收入预测下调3-4%，以反映相对疲弱的内容表现和宏 观经济不确定性。我们将目标价调整至4.50美元，基于2025年非GAAP每股收益 的15倍市盈率（之前基于15倍2025年非GAAP每股收益的目标价为4.80美元）。 维持买入评级。 ...

连续10个季度实现了正向运营现金流。 本文为IPO早知道原创 作者｜Stone Jin 值得一提的是， 2024年第三季度，爱奇艺持续拓展海外业务，推动AI赋能提速，寻求业务增量突 破。海外业务表现方面，爱奇艺海外总收入和会员服务收入保持同环比双增长。其中，中国香港、英 国、巴西和澳大利亚的会员服务收入同比增长均超过40%。海外日均订阅会员数也实现同环比增 长，其中巴西、墨西哥、中国香港和泰国同比增长均超过45%。 大陆剧集在海外市场的关注热度不断上升。第三季度，《四海重明》累计播放量居美国、澳大利亚、 日本、韩国等市场的榜首。海外当地内容方面，爱奇艺国际版独播泰剧《金色光芒2024》创爱奇艺 国际版今年泰剧单日收入新高。未来，爱奇艺将继续在海外市场开拓当地合作及商业变现，包括深化 与泰国、马来西亚、新加坡、中国香港等地的电信运营商会员捆绑套餐合作。 微信公众号｜ipozaozhidao 据IPO早知道消息，爱奇艺（NASDAQ:IQ）于11月21日美股盘前发布了截至2024年9月30日未经 审计的第三季度财报。 第三季度爱奇艺总收入72亿元 （ 人民币 ，下同） 。其中，会员服务收入44亿元；在线广告服务收 ...

"In the third quarter of 2024, we topped the industry in the drama series market share, according to Enlightent data," commented Mr. Yu Gong, Founder, Director, and Chief Executive Officer of iQIYI. "We have recently elevated our entertainment offerings and services with strategic enhancements, integrating sought-after mini and short dramas to complement our extensive long-form content portfolio. We have also introduced a family account option within our membership programs. We believe these improvements wi ...

Financial Performance - Total revenues for Q3 2024 were RMB 7.2 billion (US$1.0 billion), a decrease of 10% year over year[2] - Membership services revenue was RMB 4.4 billion (US$622.1 million), down 13% year over year, primarily due to a lighter content slate[7] - Online advertising services revenue decreased by 20% year over year to RMB 1.3 billion (US$190.5 million), mainly due to a decline in brand advertising[7] - Content distribution revenue increased by 52% year over year to RMB 814.0 million (US$116.0 million), driven by an increase in barter transactions[8] - Operating income was RMB 238.9 million (US$34.0 million), a 68% decrease year over year, with an operating income margin of 3%[11] - Non-GAAP net income attributable to iQIYI was RMB 479.8 million (US$68.4 million), a decrease of 23% year over year[14] - Diluted net income attributable to iQIYI per ADS was RMB 0.24 (US$0.03), compared to RMB 0.49 in the same period of 2023[14] - Operating cash flow was RMB 242.5 million (US$34.6 million), down from RMB 830.7 million in the same period in 2023[15] Cash and Assets - As of September 30, 2024, the company had cash and cash equivalents totaling RMB 4.7 billion (US$673.8 million)[16] - Cash and cash equivalents decreased to RMB 3,241,336 as of September 30, 2024, down from RMB 4,434,525 at the end of December 2023[34] - Total assets as of September 30, 2024, were RMB 44,830,040, compared to RMB 44,594,374 at the end of December 2023[34] - Total liabilities decreased to RMB 31,551,380 as of September 30, 2024, from RMB 32,409,459 at the end of December 2023[34] Quarterly Comparison - Total revenues for the three months ended September 30, 2024, were RMB 8,015,079, an increase from RMB 7,438,785 in the previous quarter[32] - Membership services revenue reached RMB 5,011,617, while online advertising services revenue was RMB 1,674,260 for the same period[32] - Operating income for the three months ended September 30, 2024, was RMB 746,747, compared to RMB 342,093 in the previous quarter[32] - Net income attributable to iQIYI, Inc. for the three months ended September 30, 2024, was RMB 475,920, significantly up from RMB 68,685 in the previous quarter[32] - Free cash flow for the three months ended September 30, 2024, was RMB 234,817, a decrease from RMB 382,453 in the previous quarter[36] - Non-GAAP net income attributable to iQIYI, Inc. for the three months ended September 30, 2024, was RMB 479,787, compared to RMB 246,914 in the previous quarter[39] Future Plans - iQIYI plans to enhance content appeal by optimizing long-form video offerings and incorporating mini and short dramas into its content portfolio[3]